HCLTech secures $1.14 billion digital workplace deal with Fortune Global 50 firm

IT services firm HCLTech has secured a $1.14 billion mega deal in Bengaluru to establish an AI-driven operating model for a Europe-headquartered Fortune Global 50 firm. Announced in Q2 FY27, the agreement represents entirely net new business for the company and is aimed at transforming and managing the client's Global Digital Workplace and Enterprise Networks.

The initial term of the agreement is scheduled to run from July 2026 to December 2031, with the possibility of a five-year extension. HCLTech disclosed the details of the agreement in a filing with the Bombay Stock Exchange (BSE), though the company did not reveal the specific name of the client.

Following the announcement, HCLTech's shares surged by 5.79 percent on Friday, closing at Rs 1,139.85 on the BSE.

The contract comes at a time when IT services firms are navigating slower decision-making processes from clients due to ongoing macroeconomic uncertainties. Sarvam Goel, the founder of the technology-driven investment platform Pocketful, noted that while a single large deal does not resolve the challenges facing the sector, it serves as a reminder to the market that Indian IT firms continue to secure major business.

Last month, HCLTech also acquired a 10.5 percent stake in Sarvam AI for Rs 1,427 crore. The company stated that this partnership aims to combine its enterprise transformation expertise, global client relationships, and software intellectual property to build an end-to-end sovereign AI ecosystem for India and global markets.

HCLTech is scheduled to announce its Q1 FY27 financial results on July 13. In Q4 FY26, the firm reported a 4.2 percent increase in consolidated net profit, reaching Rs 4,488 crore compared to Rs 4,307 crore in the previous year's corresponding quarter. For the full fiscal year, HCLTech's net profit reached Rs 16,642 crore, while its total contract value in Q4 FY26 was reported at $1,936 million.

The company has projected its revenue growth guidance for FY27 to be between 1 percent and 4 percent year-on-year in constant currency, with services revenue growth expected between 1.5 percent and 4.5 percent. HCLTech also expects its EBIT margin to range between 17.5 percent and 18.5 percent for FY27.